As the year moves into summer, Spain continues to show positive momentum in its hiring balance. The labor market statistics released in May illustrate solid occupancy figures and reinforce the overall trend that Spain is pushing back toward stronger employment. Unemployment remains high compared to other EU peers, yet the data signals a gradually improving path with more people finding work and more permanent positions being created. The ongoing labor reform is visibly influencing the latest membership data published this Thursday by the Ministries of Labor and Social Security.
Spain fell below 3 million unemployed for the first time since 2008
Despite inflation persisting at raised levels for nearly a year and the lingering effects of the Ukraine conflict, the labor market is resisting these pressures and shows no clear slowdown. Household self-employment continues to expand, even amid widespread economic uncertainty, contributing new members to the labor force as the economy adapts to shifting conditions.
Unemployment: Spain drops below 3 million for first time since 2008
The May data centers on a milestone: fewer than three million people registered as unemployed with SEPE. It is the first time since 2008 that this figure has dipped below that threshold, a period marked by the housing bubble and the Lehman Brothers collapse. Yet unemployment remains among the highest in the European Union, and roughly four in ten unemployed individuals do not currently receive support from employment agencies.
Still, the trend is positive, and May marks the fourth consecutive monthly improvement. The decline below the three-million mark hides a subtle gender gap, with unemployment shrinking notably among men but remaining elevated among women. While male unemployment has returned to 2008 levels, female unemployment remains closer to 2009 levels.
Employment: 8 out of 10 wage earners are on permanent contract
The second month of full effect for the labor reform is evident in contract statistics. Nearly half of the newly signed contracts are described as uncertain, yet about one-third of these are permanent full-time positions, a significant increase from pre-reform levels and higher in absolute terms than before the government, employer, and union agreement.
May added 213,643 new employees, marking the best May in four years. The total employed workforce reached 20 million active workers, a historic high for Spain. The sector driving the gains is closely tied to the approach of the summer tourism season, with activity already surpassing pre-pandemic employment levels.
ERTE: a slight rebound for travel agents
There are currently 27,380 workers covered by ERTE across Spain, about 9,000 more than the previous month. This increase is partly explained by travel agencies rejoining the ERTE mechanism, as they respond to seasonal demand and economic shifts. The war in Ukraine has not broadly pushed firms to register new ERTE files due to component shortages and higher energy costs, but some sectors continue to adjust through this program.
Self-employed: growing steadily with steady momentum
Self-employment continues its slow but persistent rise, supported by government covid relief and consistent reinvestment in entrepreneurial activity. Social Security data show an increase of 10,726 new self-employed workers compared with April, a pace slightly ahead of the previous month. This resilience adds up to 35,424 more self-employed individuals than a year ago, totaling around 3.3 million active self-employed workers.
Those enrolled in the special RETA regime await the forthcoming reform proposals on contribution rules, with a plan that could set monthly quotas between 250 and 550 euros depending on net income. A fresh round of discussions is scheduled for next week, with expectations to finalize details before the end of June.
Catalonia creates almost twice as many jobs as Madrid
In May, Catalonia stood out as the autonomous community recording the second-largest increase in employment across Spain. The Balearic Islands also posted positive gains, while Madrid reported more modest figures aligned with its regional size. Catalonia added 37,501 jobs, its strongest May since 2018, while Madrid added 21,987 new Social Security members. Across regions, employment growth remained positive and widespread, reflecting a favorable national trend.
Unemployment in Catalonia dropped sharply by 16,671 people from April, reaching 348,027 unemployed in the four Catalan provinces—the lowest since May 2008 and well below the peaks seen during the Great Recession. At the regional level, Catalonia was among the top regions for unemployment reductions, surpassed only by Andalusia in absolute terms.